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negative pledge. In DICTIOUS you will not only get to know all the dictionary meanings for the word
negative pledge, but we will also tell you about its etymology, its characteristics and you will know how to say
negative pledge in singular and plural. Everything you need to know about the word
negative pledge you have here. The definition of the word
negative pledge will help you to be more precise and correct when speaking or writing your texts. Knowing the definition of
negative pledge, as well as those of other words, enriches your vocabulary and provides you with more and better linguistic resources.
English
Etymology
The idea (and hence presumably the name) developed in the United States, and then went global. (Reference: Trevor Sykes, The Bold Riders, second edition, 1996, →ISBN, page 8.)
Noun
negative pledge (plural negative pledges)
- (finance) A type of loan or loan condition in which the borrower agrees with the lender not to allow any other lender or creditor to rank ahead for payment in the event of a liquidation. Such a loan is unsecured (ie. not backed by a charge over specific assets).
Usage notes
- Hailed as a great innovation when developed in the 1970s, but by the end of the 1980s had become a dirty word.